The effect of inventory management practices on financial performance of brewing firms in Rwanda: A case of Bralirwa Ltd 2014-2023

Abstract

This study sought to identify inventory management practices applied by BRALIRWA Ltd, to analyze the financial performance of BRALIRWA Ltd from 2014 to 2024 and to find out the relationship between inventory management practices and the financial performance of BRALIRWA Ltd. The study adopts a mixed method approach, combining desk research, interviews and quantitative analysis based on primary and secondary data to meet the research objectives. A regression model has been applied to analyze the effect of inventory management practices on financial performance. The findings show that the overall model is statistically significant (F = 82.37, p-value = 0.000). However, among various inventory management tools used by Bralirwa, the material resources planning is the mostly statistically significant (p value= 0.000). Therefore, while a large brewery company may have various inventory management practices, these tools affect to different degrees its financial performance. Considering that they can streamline a firm performance, inventory management practices should be given due consideration by manufacturing companies.